ING to lend $37m to Sunseap to build 50 MW in Asia


Sunseap Commercial Assets, a Sunseap subsidiary, will develop and own the 50 MW portfolio. The projects will range from 100 kW to 5 MW in size and will all be backed by long-term PPAs. ING said the agreement is its first financing transaction for rooftop solar in Asia.

The banking group — which has shares listed on exchanges in Amsterdam, Brussels and New York — said that it is usually not economical to finance rooftop PV projects separately, because of their relatively small size. That is why they are mostly funded on a guaranteed basis, it claimed.

“But in this case we have created an innovative structure to finance this portfolio of rooftop solar projects on a limited-recourse basis and in a single loan facility,” said Erwin Maspolim, Asia-Pacific head of utilities, power and renewables for ING. “The financing is expected to help different industries in Singapore – from education to transportation to technology – offset their carbon footprint.”

The bank’s S$50 million loan follows its help in creating a green financing framework for Sunseap. The framework allows the group and its subsidiaries to secure instruments such as green loans and green bonds to back the development of renewables.

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“We expect this deal to spark off more demand for green loan principles-compliant loans in the renewable energy sector,” said Herry Cho, head of sustainable finance for Asia-Pacific, ING.

Last November, Sunseap revealed plans to build one of the world’s largest floating PV systems to be installed in saltwater, in the Johor Strait, between Singapore and Malaysia. The city-state of Singapore had installed just 150 MW of solar by the end of 2018, according to recent statistics from the International Renewable Energy Agency (IRENA).

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